The 2009 Algal Industry Survey provides baseline information about our emerging algal industry. Respondents were positive about the future of the industry and optimistic about algae’s potential to help solve critical social and economic problems.

Most industry participants believe algal production will focus on four biofuels; biodiesel, jet fuel, ethanol and gasoline. During microalgae appear to be the favored feedstock followed by freshwater algae and genetically modified strains. Most growers will use carefully selected algal strains from natural settings while others will choose height lipid species from algal collections or genetically modified strains. Algal producers are experimenting with a diverse set of production models with about a third using open ponds, another third using semi-closed ponds or polycultures. About 30% of producers plan to use closed or semi-closed systems. About 40% indicated double producers will produce algae all over the earth, with the mid-latitudes and tropics beating the favored production areas.

Production models seem to vary based on the production objectives, type of feedstock and location. International producers tend to use open ponds while U.S. producers are planning to use closed or semi-closed cultivated algal production systems. International producers are using naturally selected algae species while U.S. producers are planning to use a combination of species selection and genetically modified organisms that maximize the production of algal oil.

The industry’s most critical production challenges are harvest and extraction, production systems, component separation followed by algal species selection, culture stability and contamination issues. Critical industry issues are stable production systems, trained personnel, strain selection and costs. Nine technical challenges include credible producer claims, access to capital, in an electoral property and train personnel. Supply-chain challenges include processing, growing systems, component separation, design and construction and nutrient supplies. Besides the production of liquid transportation fuels, respondents believe algae will play a major role in carbon capture and recycle, water remediation and feed for fish, fowl and animals.

About 50% of ABO survey respondents believe that a focused algaculture program could replace ethanol production in 10 years and 88% in 20 years. About a third believes algal oil can displace U.S. oil imports in 20 years and 56% estimate 30 years. Roughly a third of respondents believe that algae will never replace oil imports.

Besides biofuels the main coproducts from algal biomass will be animal feed, fish feed, carbon capture suit in sequestration followed by chemical and unique compounds, fertilizers and nutraceuticals. The most likely social and economic issues algal production will address include liquid transportation fuel, displacing oil imports, carbon capture, clean polluted water, animal and fish feed and nutrient recovery.

Recommendations to move the industry forward include better access to information, substantial increases in public and private funding for algal R&D, stronger education and training, more information on production issues and better networking and collaboration. Industry participants want to see demonstration projects, decision support systems and independent reviews of algal production systems.

Future of algal industry research needs to drill down on production, supply chain and social and economic issues. Improved information on industry needs will support industry participants and provide critical information needed for public policy decisions and support.

15. What three key things need to happen to move the algal industry forward?

The dominate words used to enhance the industry were success models, funding sources, government support, education, credible claims, cost reduction, communication and cooperation. and production. The industry needs government investment because the initial investments and risks are very high. The recommendations are grouped and ordered based on how often respondents recommended the action.

Success models

Success stories (5)

Multi-year pilot farms

Viable economic model

Proof of cost effective large scale production techniques

Cost competitive algae-to-fuel systems need to be demonstrated

Commercial scale production

Show economically feasible, sustainable working systems

Capital

Access to capital (12)

Level playing field with other fuels

Financing models

Technology development

Technical standards; standards for reporting yields

Solve harvest and separation technologies (7)

Development of all steps of the process chain

Scaling of bioreactors

Understand the entire algae biology

Species selection

Discovery of valuable byproducts

Robust lifecycle analysis

Development of standards for terminology, measurements, etc so that when one of says or writes something we all know what it means.

Stop trying to create perfect algae

Support much more outdoor tests and experiences

Development of new culture technologies

Develop low energy separation and processing techniques

Move the focus from biology to process engineering

Academic and industry training

Doing what you are doing now-Action

Education and training (9)

Manpower training (7)

Spread of knowledge

Educate public and politicians (4)

Government support

Cap and trade

Concerted, focused and coordinated lobbying at government level

Increase Congressional Advocacy and obtain incentives

Grants for more basic R&D

Parity with other biofuels

True investment in research and commercialization from Federal Government 20-year commitment of public funding at $200M/year

Decades of sustained and increasing government and industry R&D and scale-up financing regardless of fluctuating oil prices.

Water remediation funding – or EPA enforcement

States need dedicated research programs

Algae need to become an industrial commodity

Increase funding for basic science on algae

Regulatory approval

Educate EPA, USDA, etc.

Technical standards

Level playing field with other biofuels

Speed regulatory approvals

Credible claims

End hype! (5)

Stop the PR machines

Science Based, Fact driven algae industry development

Minimize grandstanding, maximize credibility

Challenging of outrageous production claims

Reduce costs

Develop low-cost growing systems (9)

Lower costs (14)

The cost of production at the very large scale needs to be drastically reduced

Communication and cooperation

Better communication among different working groups

Collaboration between and among companies

Too many individual efforts, IP driving this issue

Collaboration among the different supply chain participants

Knowledge of Best Practices

Good recommendations

Carbon dioxide pipeline!

Patent pooling

Find the black swan

Rational approach to IP

Parity with corn/soy for algal biofuels

Optimize carbon capture

What algal information would most benefit you? (These came from last year’s survey.)

Respondents indicated a desire for better information on algae, insights on financing, support for education and training, production information and stronger collaboration. Additional requests included the ideas below.

Industry summary. The algal industry may follow the lead of other forms of renewable energy such as solar and wind to create a summary of the industry.

Demonstration units. The algal industry should build and operate demonstration facilities so that people can see algal production.

Decision support. Information on production, extraction and processing are too distributed and need to be more accessible.

Products and coproducts. What is the total product array for algal biomass and what production strategies are used to maximize each product?

Real production numbers. Actual rather than theoretical production numbers would be a huge breakthrough.

Ideal strains. What are the ideal strains for various products and what are sources for these strains.

Market trends. What are market trends in the algal industry?

Independent reviews. Are there independent reviews of algal production methods?